Do I really need a business plan?
Ok Realtor friends, as we enter October, you might be hearing people talking about business plans or attending business planning clinics. You may be saying to yourself, ‘I don’t need a business plan; my plan is to sell more houses’. So is it even necessary to invest the time to write a business plan?
The answer is ‘no’, if you’re happy with whatever level of production you are experiencing now. The sales you experienced this year are the direct result of however it is that you’re showing up in your life and your business running on your default operating system.
The answer is ‘yes’, if you’re not happy with whatever level of production you are experiencing now. Do you feel like you should be further along on your sales path than where you currently are? Then keep reading!
Why Write a Business Plan?
The simple act of writing a business plan is more than a formality—it’s a strategic tool that can significantly impact your success. Here’s why:
1. Clarity and Direction: A business plan helps clarify your goals and the strategies you intend to implement to achieve them. It forces you to think critically about your tactics, activities, budget, market conditions, and competitive landscape.
2. Increased Probability of Success: Statistics show that individuals who write down their goals are 42% more likely to achieve them compared to those who don’t. The act of documenting your objectives helps solidify your commitment to them and serves as a constant reminder of what you need to accomplish.
3. Preparation for the New Year: In real estate, the activities you take today – or don’t take today – will show up in your bank account 90 days from now. Thus, preparing your 2025 business plan in October isn’t just timely—it’s necessary. It ensures that by January 1st, you’re not scrambling or lagging but are already on pace to meet your targets.
Why Start in October?
October is the ideal month to start planning for the following reasons:
- 90-Day Lead Time: See above; real estate is a 90 day business, which means what you do right now will show up in your January results. If you want to see a robust start to 2025, the groundwork begins in the fourth quarter of 2024.
- Set the Stage Early: By starting your planning in October, you can align your strategies with the upcoming year’s goals and begin implementing them before the year even begins. This approach helps you maintain momentum and avoid the January rush.
How to Approach It
- Define Clear Objectives: Break down your overarching goals into actionable steps. This might include increasing the number of homes sold, increasing your lead generation efforts, increasing your skills, increasing the size of your SOI, decreasing expenses, etc..
- Incorporate Accountability: Share your goals with a mentor, colleague, or coach who can hold you accountable. This can significantly increase your chances of success.
Getting Started
Begin by reviewing the past year: what worked, what didn’t, and what could be improved. From there, outline your key objectives for 2025 and the strategies you’ll employ to achieve them. Remember, your business plan is a living document. It’s meant to be revisited and adjusted as conditions change.
For those who may feel daunted by this task, remember that the effort you put into planning now can define your success next year. To ensure you use it as a living document and don’t overcomplicate it, be sure you limit your business plan to one page. The best business plans should be simple. The simpler a plan, the easier it is to execute on!
Wonder what a one-page business plan looks like? Shoot me an email and I’ll share the template with you.